by Guest » Mon Jan 28, 2013 08:19 pm
we've had a summer cabin in the family for years. recently we have converted ownership from joint tenants to an LLC. We knew the insurance industry has been slow to understand this is not a business in the traditional sense but were not prepared for the complete absence of any insurer we contact in Minnesota who has even heard of the concept much less written such a policy. can anyone offer assistance?
Posted: Thu Jan 31, 2013 11:38 am Post Subject:
What's the point of converting from joint tenants to an LLC unless this is a business use of the property? If simply to avoid personal liability for some other reason, then you probably made an unwise decision -- most states charge an annual fee to maintain an LLC (in CA it is about $800 per year, in the form of a minimum business tax). That would certainly affect any potential "savings" you expected to obtain through lower premiums.
If the property is, in fact, being used for business purposes (such as a rental property), then it can be covered by a commercial property and liability package policy, which is nothing new.
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